"No surprises , then.."
The interim report by David Murray, ex head of The Commonwealth Bank, has found, surprise, surprise no concern for the dominance, of the big four banks but confirms there is a healthy level of competition in the backing sector.
Sixty years ago, or thereabouts, Fred Schwed published a crazy look at Wall Street and investment banking entitled "Where are all the customer's yachts?" Unbelievably, is still in print and worth a read should you find a dose of humour would help you unwind. In the book Schwed describes how investment bankers charge commissions basically stating that the clients money was thrown in the air and what stuck to the ceiling was returned to them, the rest going to the institution.
After the GFC the banks have emerged stronger and more profitable than ever . Having brought about the disaster with wacky lending practices they were heavily subsidised and bailed out. Not so in Australia but the implicit guarantee of the Australian Government helped. a
A few years back when interest rates were coming down most of the big four refused to pass on the total cut to their clients. The cost of funds was too high and they claimed gross shareholder disappointment if their margins were to shrink.
It's little wonder that the interim report/study is a balanced staid and stodgy summary of the current state of the banking industry. The outcome could have been different but it's steady as she goes
with some minor rumblings about possible crashes. But that is to be expected. Crashes and Wall Street collapses are the tycoon's nightly thrills, Oh! Shudder!
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